Kanco Tea & Industries Limited reported a net loss of ₹5.87 crore for the financial year ended March 31, 2026, on the back of lower tea price realization. The company recorded a loss of ₹8.66 crore in the previous fiscal year. Revenue from operations for the period increased to ₹75.28 crore from ₹63.60 crore in FY25.

The tea producer attributed the challenging financial results primarily to a decline in average tea prices. The average realization of the company's teas stood at ₹249.07 per kg for the year under review, down from ₹290.95 per kg in the previous year. This drop in prices occurred despite an increase in overall tea production in North India, which rose to 1,152.98 million kgs in FY26 from 1,090.32 million kgs in FY25.

Total income for the year stood at ₹76.32 crore, while total expenses amounted to ₹84.43 crore. The company’s profit before exceptional items and tax was a loss of ₹8.05 crore. Following a tax expense of ₹2.18 crore, the company posted a net loss of ₹5.87 crore. Other comprehensive income for the year was a loss of ₹0.07 crore, resulting in a total comprehensive loss of ₹5.94 crore.

Operational Performance

The company’s own tea production figures remained lower compared to the previous year, although overall North India production saw a significant increase in April 2026. The market sentiment experienced a downturn due to oversupply and subdued demand, both domestically and internationally. The company noted that these challenging conditions are anticipated to persist into the upcoming year.

To mitigate the impact of lower prices, the company has proactively implemented measures to upgrade its machinery and enhance the quality of its teas. During the financial year, 20.36 hectares, 12.22 hectares, and 8.94 hectares of plantation area were replanted, rehabilitated, and uprooted, respectively.

Financial Results Summary

The Board of Directors has not recommended any dividend for the year under review. The paid-up equity share capital of the company remained unchanged at ₹5.12 crore as of March 31, 2026.

Kanco Tea & Industries has reported that water levels have subsided at its Bamonpookrie Tea Estate, leaving approximately one foot of residual sludge in affected areas. An Insurance Surveyor is currently on site conducting an initial assessment of the damage. The company stated that further inspection is required to fully evaluate machinery damage, ascertain the extent of the problems, and establish the necessary steps for recovery and restoration.

In a positive development, operations at Mackeypore Tea Estate have normalized. The company confirmed that the water level has reduced, allowing the plucking of green tea leaves and the manufacturing of teas to resume on July 21, 2026. This update follows the company's earlier intimation regarding the severe flooding triggered by incessant rainfall and a cloudburst in neighbouring Nagaland, which had previously halted production and impacted critical infrastructure including labour and staff quarters.

The company has assured that further updates regarding the situation and the restoration of full operations will be provided in due course.